China Thermal Coal Hits Three-Year High as Prices Surge 24% Since Mid-July

Spot thermal coal at the port of Qinhuangdao rose 0.5% to a three-year high of 986 yuan ($147) a ton in the week through September 28, 2026, marking an 11th straight weekly gain and a 24% increase since mid-July. The rally threatens power-plant margins and could push up electricity costs for industrial users. China mines and burns roughly half the world's coal, which still supplies about 50% of its power generation despite a rapid buildout of renewables. Domestic output has slumped after a deadly May accident in Shanxi shut mines and triggered strict safety inspections, cutting provincial production by nearly a third from June through August. Regulators are pushing to accelerate mine restarts and have pledged higher output by year-end. Imports from Indonesia, China's largest foreign supplier, are down 25% in 2026 after Jakarta slashed mining quotas, with low river levels further hampering shipments.